In yet another hotel merger, Bangkok-based Minor Hotel Group is in the final stages of its acquisition of Tivoli Hotels & Resorts, a well-known Portugal-based brand with 14 properties in Portugal and Brazil. The US$321.46 million merger deal not only gives Minor strategic entry into Europe and Latin America, it also represents the largest-ever hospitality transaction in Portugal.
The acquisition was completed in separate stages over the course of more than 12 months and follows MHG's acquisition in 2015 of five Tivoli hotels in Portugal and two in Brazil, along with the Tivoli brand in Brazil. This now gives MHG the opportunity to expand the reach of the Tivoli brand into its other areas, including the Middle East, Africa and Asia. In addition, MHG intends to invest in Tivoli's strong asset portfolio to further enhance the positioning of the brand across its markets.
This final stage of the brand's acquisition comprises seven hotels in Portugal: the 119-room Tivoli Jardim Lisboa Hote in the country's capital; the 77-room Tivoli Sintra Hotel in the UNESCO World Heritage Site of Sintra, and the 30-room Tivoli Palácio de Seteais to the west of Lisbon; in the Algarve, the 324-room Tivoli Lagos Hotel Beach Club & Golf; the 280-room Tivoli Victoria Vilamoura Golf Resort Conference & Spa; the 88-room Residences at Victoria Clube de Golf, plus the 100-room Tivoli Coimbra Hotel in historic Coimbra north of Lisbon. These properties are part of the overall Tivoli portfolio of 14 hotels, with 12 in Portugal and two in Brazil, with almost 3,000 rooms in total.
Dillip Rajakarier, COO of Minor International and CEO of Minor Hotel Group, in a statement announcing the finalization of the merger, said, "We are excited to add Tivoli to Minor Hotel Group's portfolio of hotel brands. With over 80 years of history, the Tivoli brand brings with it a rich heritage, a highly experienced team and a deeply loyal customer base. The Tivoli acquisition further cements MHG's position as a world-class hotel operator, with a portfolio now extending to Europe and South America. Looking forward, we have already planned further investment into the Tivoli hotel assets and its operating and distribution infrastructure to realize the full potential of this strategic investment."
MHG's acquisition of the Tivoli brand is the latest in a series of international investments by the Minor Hotel Group as part of its long-term diversification strategy, which over the last two years has seen the group invest more than $550 million in hotel projects in Southern and East Africa, Asia, Australia, South America and Europe. With the addition of the Tivoli properties, MHG's portfolio now stands at 145 hotels in 22 countries and includes brands such as Anantara, Avani and Per Aquum.